PETALING JAYA: The government will review Padiberas Nasional Bhd’s (Bernas) concession as Malaysia’s sole rice importer before its concession expires in 2031, says deputy agriculture and food security minister Chan Foong Hin.
Chan said Bernas currently holds sole importer status under a policy that began under the National Padi and Rice Board (LPN) in 1973 before being continued by Bernas following the agency’s corporatisation and privatisation.
“Therefore, the policy remains in place in line with the concession agreement, which will expire in 2031,” he said when winding up debate on the Control of Padi and Rice (Amendment) Bill 2026 in the Dewan Rakyat.
Chan did not elaborate on the scope or terms of the planned review, including whether the government was considering ending Bernas’s monopoly altogether.
He was responding to questions from several MPs on Bernas’ role as the country’s sole rice importer.
On July 9, Teresa Kok (PH-Seputeh) questioned the rationale behind the government’s decision to privatise LPN in 1994, describing it as one of the government agencies that was fully transferred to private ownership.
She also asked whether the government had any plans or a roadmap to end the privatisation of the padi industry under Bernas.
Chan said Bernas is responsible for providing RM3.2 billion to fulfil 10 social obligations imposed by the government, on top of additional contributions the company makes as part of its commitment to farmer welfare.
“In 2025, Bernas provided RM90 million in cash under the special assistance for farmers programme to small-scale farmers to help ease their cost-of-living burden.
“Bernas also allocated RM13 million from net profits earned through rice import activities to be distributed to farmers,” he said.
Chan said amendments to the Padi and Rice Control Act 1994, along with new regulations, would allow the ministry to update rice categories and grades that have been in use since 1992.
He said the move was necessary to meet the current needs of the industry and ensure Malaysians have access to a stable and secure rice supply.
The amendments also include provisions to regulate the mixing of local white rice (BPT) with imported white rice (BPI).
“The ministry views rice mixing as one of the alternatives to address the issue of BPT prices, which have remained controlled at RM2.60 per kg since 2008.
“At the same time, the ministry welcomes the Malaysian Competition Commission’s (MyCC) suggestion to find the best approach to regulate rice mixing more comprehensively,” he said.
Chan added that the ministry was open to considering suggestions from MPs, including introducing a rice tracking system to monitor the movement of rice supplies in the market.
The Control of Padi and Rice (Amendment) Bill 2026 was later passed without amendments after receiving majority support from MPs.
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